Funny Money Times: 10 Tips on Making it Through This Financial Crunch

Serious times call for — well a more serious approach to money management. I opted for a focus on marketing instead of finance, so the deep & analytical dissertation on what has happened in the financial world will not be found here today. Here’s a straight shot of strong suggestions to help you keep your focus on financial freedom.

1. Know the Budget: I’m all educated but it took me some time to really decide that I needed to take a hard look at my finances. Mortgage, student loans, home expenses… well I haven’t been tracking very well, but thanks to mint.com and Microsoft Excel, things are looking up. We have to be diligent in learning what our expenses are and planning our savings. Learn what you’re spending on expenses, see if you can cut down – and definitely put yourself on a budget.

2. Live the Budget: Make it a challenge. My big challenge now is to have two months of my living expenses in my checking account. Whatever your budget is… apply enough stick-to-it-tiveness. I was embarrassed at the beginning but now I come right out and say it. ” I can’t go out (insert name of good friend). I am living on a budget.” Now that I’ve said it a few times, my friends know that if we’re hanging out it will be at one of our homes with a movie we own and food that’s in the fridge.

3. Cut Costs: Have you been spending too much? Have you been paying overage charges on your cell phone? Start tracking your minute usage more closely. Here’s a thought on how to cut costs of leisure purchases. Start a list of things you’d like to buy. Review that list periodically and decide when one thing is possible. Also – if you’re a gadget lover, rediscover some of those things in the storage area instead of buying new toys.

4. SAVE SAVE SAVE

5. Keep the Job: Now is not the time to tell the boss how you really feel. The unemployment rate in the United States is the highest it’s been in five years. The labor market is tough.

6. Entertain on a Budget: What is costly is not always best. Skip the $25.00 movie and invite friends over for a board game. You can try walking in the mall without shopping but that was torture for me. There are other ways though… Enjoy the great outdoors. Take walks around the neighborhood.

7. Credit: Stop spending money you don’t have. Period. There’s a great lesson here.

8. Educate Your Kids: Oh that my parents would’ve educated me about credit (and while we’re blaming parents… dental floss too). This is a greaaat time to start educating children about finances and how to manage them. Better yet – be an example.

9. Volunteer: As bad as we have it, someone has it worse. The Food Banks are having a hard time staying stocked. More people are losing their homes, and all the while we’re complaining about not being able to buy that new car we wanted. Spending an evening at a food bank just might be the perspective you need. (If they’re old enough… take the kids)

10. Stay Positive: If you fall off the saving bandwagon, dust yourself off and hop back on. Some believe that “The Age of Prosperity Is Over”. I prefer to be less dramatic. Stay focused on cutting costs and saving money. You’ll find that much more freeing in the long run than a day at the mall.